Business Growth Fund (BGF), an independent company established to help growing businesses in Britain, has made an investment into VTL Group, a manufacturer of precision-engineered components for the automotive industry.
BGF has invested £4m of growth capital in the company and will take a minority stake and a seat on VTL’s existing board.
This is BGF’s tenth investment in the manufacturing sector and its first in the automotive industry. Since its inception in May 2011, BGF has injected around £45m of growth capital into UK manufacturing businesses.
VTL is one of the largest UK developers and manufacturers of precision engineered transmission and turbo components for the commercial vehicle and passenger car markets. The company supplies these components to automotive manufacturers including Cummins, Toyota, Renault and Nissan and also provides a variety of additional services including product R&D and prototyping.
Formed in 2001, VTL has developed from a single product, single site European focused business, to a global operation, manufacturing multiple products and employing over 400 people generating annual revenues in excess of £50m.
BGF’s investment will enable VTL to grow the business organically by developing new customers in the automotive sector and increasing the range of components it manufactures for existing customers. The current funding package and access to further growth capital will also provide the financial means to pursue other acquisitions and investments in the future.